Commission approves €70 million Cypriot State aid scheme to compensate damages from adverse climatic events in the agricultural sector

The scheme is aimed at supporting farmers who have sustained damage to their crop and livestock production or to their fixed assets, stored products and production equipment due to adverse climatic events which can be assimilated to a natural disaster, such as storms, frost, hail, snowfall, heavy or untimely rainfall, high temperatures, temperature fluctuations, drought, extreme air conditions, and dust in the atmosphere. Under the scheme, which will run until 31 December 2030, the aid will take the form of direct grants. The maximum amount of aid per beneficiary is €150,000 per year (and €500,000 over a period of five years).

The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions. In this context, the Commission applied the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate to achieve the objective pursued. Furthermore, the Commission concluded that the scheme is proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade between Member States. On this basis, the Commission approved the Cypriot scheme under EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.110443 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.